Tractor manufacturers demand GST rate cut on tractor components

Present levy is of 28 per cent GST on parts and components of tractors while that on construction equipment is 18 per cent.

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New Delhi: Disappointed over 28 per cent GST on majority of components, tractor manufacturers have urged government to treat the industry at par with construction equipment, which comes in the slab of 18 per cent.

"The present levy is of 28 per cent GST on parts and components of tractors but parts and components of construction equipment, which are close kin to tractors especially under 80 HP, will attract only 18 per cent GST," Tractor Manufacturers Association (TMA) said in a statement.

Both sectors have similar emission norms but are being treated differently when it comes to GST, despite several representations to the GST Council, it added.

Stating that the farm sector has been "short-changed under the new GST rules" in terms of components and spares of tractors, TMA said GST rate on tractor parts and components must be revised to 18 per cent.

"Parts of tractors, equipment and implements can be easily identified and used only in tractors and are not usable in automobiles which are high-speed applications as opposed to tractors which are low-speed, high-torque applications," it said.

Tractor manufacturers were also upset over transition provision on stocks held at depots and dealerships. With hardly few days to go for GST regime, any delay in extending transition provision could increase tractor costs by Rs 30,000-34,000, it added. "Urgent clarity on extension of transition provision is therefore also awaited," it said.